Mercantile Trust Co. v. Hensey
Headline: Court affirms owner’s verdict against builder, ruling an architect’s completion certificate is not automatically final and damages may be recovered from construction defects and omissions.
Holding: The Court affirmed the judgment for the owner, holding that the architect’s completion certificate was not final or conclusive under the contract and no reversible error appeared in the damage evidence.
- Owners can challenge defects despite an architect’s signed completion certificate.
- Builders need clear contract language to make a certificate final and binding.
- Attorneys must object at trial if evidence fails to segregate different damage claims.
Summary
Background
A property owner sued a builder after several houses were finished in ways the owner said did not follow the plans. The owner’s witnesses said each house was worth about $2,000–$3,000 less because of omissions, structural faults, and defective materials. A jury returned a verdict for the owner, and the lower appellate court affirmed that judgment. The builder appealed, arguing two main points to this Court.
Reasoning
The Court looked at two questions: (1) whether the jury had any proper evidence to separate damages caused by omissions from damages caused by defective materials or workmanship, and (2) whether the architect’s written certificate saying the work was complete should have been treated as final and barred the owner’s claim. The Court found no clear record showing the owner failed to prove individual items of damage; the written record likely summarized detailed proof, and the builder never asked the trial court to direct a verdict on that ground. The Court also found that the trial court did not give the instruction the builder claimed it gave, so there was no unlawful limitation on damages. On the certificate point, the Court said the contract required an architect’s certificate for payment but did not say that the certificate would be final and conclusive, and the contract even stated the contractor’s overall responsibility remained.
Real world impact
The decision leaves the owner’s verdict in place. It means an architect’s certificate alone does not automatically block an owner from proving construction breaches unless the contract clearly says the certificate is final. Builders who want a final certificate should include plain, explicit contract language; owners can still seek money for defects shown at trial.
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